Virtually every successful business enterprise implements various computer applications to automate different business processes. For example, an enterprise automates the processing of purchase orders with the help of so called logistics computer application. The same enterprise could use a supply chain management application to organize and optimize the production of goods and services. Many large enterprises have subsidiaries or branches in different locations, sometimes in different countries. Such enterprises usually have complex computer system environments that include separate or autonomous sets of computer applications at each location for automating the respective business processes. The sets of different computer applications running at the different locations (or subsidiary companies, or branches) could be integrated in an enterprise resource planning (ERP) system. Very often, some of the computer applications in such a set are legacy programs developed by different vendors.
In every business enterprise or legal entity, financial documents are attached to virtually all activities that involve resource management. For example, processing of sales orders in a logistic system of a company is accompanied by crediting revenue accounts and debiting account receivables in the company general ledger; transfer of goods from suppliers to consumers is accompanied by debiting material stock accounts and crediting special reconciliation accounts; employees payroll is accompanied with debiting expense accounts and crediting liability accounts; etc. Typically, the application that automates an action creates a corresponding business transaction and produces the accounting document that accompanies this action, e.g., a logistic system produces the necessary accounting documents for each purchase order. The different autonomous applications running in an enterprise produce accounting documents or accounting entries that are incorporated in a number of financial documents and are posted to the general ledger of the enterprise. In general, such enterprise employs a central financial system to receive and post financial documents produced by the sets of applications at the different locations.
FIG. 1 is a block diagram of an exemplary computer system 100 for enterprise business processes automation. In computer system 100, logistics application 110 and accounting application 115 are illustrated. This configuration could include other applications as well, for example, a supply chain management or human capital management application could be illustrated instead of logistics application 110. In addition, the illustrated application is one of a number of applications with similar accounting functions running in different subsidiaries or locations of the enterprise. In logistics application 110, logistics transaction data 120 is collected for every single operation performed. For example, receiving a purchase order is one such operation.
Chart of accounts 125 stores a full list of general ledger (GL) accounts. The GL accounts are used in the accounting entries that are generated for each of the transactions performed in logistics application 110. To generate an accounting entry, logistics application 110 needs additional financial configurations and customizations. These additional data reflect company and statutory requirements, and are stored in module other finance configuration 130. Logistics application 110 utilizes financial logic 135 to generate the necessary accounting entries based on the data from logistics transaction data 120, chart of accounts 125 and other finance configuration 130. The generated accounting entries for the transactions or actions executed in logistics application 110 are included in financial documents 140. Financial documents 140 contain the relevant general ledger accounts from chart of accounts 125 and are locally stored in local GL 145 by logistics application 110 for different purposes, e.g., auditing, reporting, settlement, etc.
Logistics application 110 and the other applications in the same or different locations with similar accounting capabilities, if any, replicate financial documents 140 to accounting application 115. Replicated documents 155 are centrally posted in central GL 160. Central GL 160 stores a full record of the performed transactions by the applications running in the enterprise. Logistics application 110, as well as any other business application with accounting capabilities running in computer system 100, utilizes inbound interface 170 to replicate financial documents 140 to accounting application 115.
The financial configuration master data, necessary for generating accounting entries by logistics application 110, and by the rest of the business applications running in computer system 100, is stored in accounting application 115. This master data includes chart of GL accounts 150, and configuration data (not illustrated in FIG. 1). Accounting application 115 utilizes interface 165 to replicate chart of GL accounts 150 to logistics application 110.
Generally, the master data is frequently changed due to various reasons, including organizational changes, changes in the business practices, statutory changes, etc. In a system environment, where a set of autonomous applications generate accounting entries and replicate them to a accounting application, financial configuration master data have to be replicated or distributed consistently among a number of different business applications. Often, the business applications are even developed by different vendors. Additionally, the changes to the master data usually require changes in the local configuration and customization in the different business applications. The accounting functionality integrated in the various business applications of an enterprise is not directly related with their main purpose and functions—to automate various business processes.
The financial governance of the different business applications, characterized with frequent need for ensuring consistent transfer of financial data, and the related re-configuration and re-customization of the accounting functionality, could be a tedious task for the administrative staff. Such financial governance consumes substantial resources, and generates a potential for errors in accounting entries with unpredictable consequences. Furthermore, different business applications have to implement similar accounting functionality and to use the same inbound and outbound interfaces to generate coherent accounting statements. This is difficult even when all applications running in an enterprise environment are developed by one and the same vendor. When different vendors are involved in the process, the resource consumption and the risk of errors and inconsistency could be much higher.